The Scottish Salmon Company PLC: Operational Update Q1 2019

Continued operational improvements and record results

Highlights

Key financials

  Q1 2019
Actual
 

IFRS 16 Adjusted
Q1 2019
Excluding IFRS 16
Q1 2018 FY 2018
Net operating revenues 53,486 - 53,486 43,374  180,125
EBITDA 20,235 2,665 17,570  15,166  56,658
EBIT before fair value adjustments 15,366 79 15,287 13,089  48,014
Equity ratio 66% - 66% 62% 63%
NIBD 36,938 - 36,938  39,632 35,788
Harvested volume 8,725 - 8,725 7,136  29,913
EBIT/kg before fair value adjustment 1.76 0.01 1.75 1.83 1.61

Status and outlook

       

      The Company has retained Daiwa Corporate Advisory Limited  (DC Advisory) as financial advisor to assist in a review of the various strategic options available to the Company in order to maximise value for its shareholders. 

       

      These strategic options include but are not limited to (i) a potential return of capital to shareholders; (ii) utilising the capital markets in order to facilitate the Company's non-organic production growth strategy; and / or (iii) seeking a strategic partner to expedite sales expansion into Asia and other markets.

       

      The Company does not expect to disclose information on the development of the strategic alternatives under review until the process has been completed or terminated, or if a disclosure is required in order to comply with applicable laws and regulations. No assurance can be given that any specific outcome will be proposed or completed as a result of this process.

       

CEO comment

Craig Anderson, Chief Executive Officer at The Scottish Salmon Company, said:

"In the first quarter, we delivered strong results with good operational performance across the value chain and in positive market conditions. Both harvest volumes and revenue increased compared to the same period last year.

"Our commitment to Scottish Provenance continues to further strengthen the position of our brands, particularly in key export markets. We have a global perspective and robust long-term strategy to support growth to which driving exports is fundamental. 

"We continue with our investment plan to optimise productivity and efficiency throughout our value chain and site development to support our ongoing growth. In light of this we are undertaking a review of strategic options as it is deemed to be in the best interests of all our shareholders. 

"In our view, SSC's share price does not accurately reflect the intrinsic and long-term value of the Company due to its low free float and lack of adequate share trading liquidity. With DC Advisory's assistance we are confident we will be able to address these issues going forward.

"We remain firmly focused on our strategic priorities, ensuring the responsible growth of the Company as we bring the finest quality Scottish salmon to worldwide markets.

 "Global recognition has also come in the form of being shortlisted for a Seafood Global Excellence Award for our Label Rouge Tartan Salmon Royal Mile.  An addition to our top accreditations is the recent BRC8 AA rating for the Harris & Lewis Smokehouse which will exclusively smoke our unique Native Hebridean Salmon.

"We were named a finalist in the Business in the Community 'Responsible Business of the Year' acknowledging the value of the sector to our communities, Scotland and the UK as a whole. We are also proud to have been shortlisted in three categories in the prestigious Scotland Food & Drink Excellence Awards: Business of the Year, Export Business of the Year and Primary Producer of the Year."

For more information, please contact:
Su Cox, Investor Relations, su.cox@scottishsalmon.je

For more information: www.scottishsalmon.je

About The Scottish Salmon Company

The Scottish Salmon Company is the leading producer of quality Scottish Salmon with all operations in Scotland. The Company is engaged in all stages of the value chain from smolt production through freshwater and marine farming to harvesting and processing, as well as sales and marketing activity. It is dedicated to producing the highest quality Scottish salmon.

All of The Scottish Salmon Company's farms and processing facilities are audited and approved by the internationally acclaimed BAP accreditation scheme, which includes excellence in fish husbandry and animal welfare.

Over 600 people are employed by the Company, with its head office in Edinburgh.

The Scottish Salmon Company Limited is a subsidiary of The Scottish Salmon Company PLC, which is listed on the Oslo Stock Exchange.

This information is subject to the disclosure requirements pursuant to section 5 -12 of the Norwegian Securities Trading Act.